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rotex Benz CT-40 Total CT-40 Total 100 Required: 250 600 liters The quantities of chemicals purchased and used during the current production period are shown in the following schedule. A total of 200 batches of Gas Gain were manufactured during the current production period. Energy Products determines its cost and chemical usage variations at the end of each production period. Chemical Quantity Used Echol 38,000 liters Protex Benz 50 Mix variance Usage variance 0.425 0.150 0.300 Yield variance 42.50 37.50 Compute the total direct materials usage variance, and then break down this variance into its mix and yield components. Do not round intermediate computations and round final answers to the nearest cent. (CMA adapted) 15.00 $135.00 18,400 54,000 10,800 121,200 liters X Favorable Favorable Unfavorable

rotex Benz CT-40 Total CT-40 Total 100 Required: 250 600 liters The quantities of chemicals purchased and used during the current production period are shown in the following schedule. A total of 200 batches of Gas Gain were manufactured during the current production period. Energy Products determines its cost and chemical usage variations at the end of each production period. Chemical Quantity Used Echol 38,000 liters Protex Benz 50 Mix variance Usage variance 0.425 0.150 0.300 Yield variance 42.50 37.50 Compute the total direct materials usage variance, and then break down this variance into its mix and yield components. Do not round intermediate computations and round final answers to the nearest cent. (CMA adapted) 15.00 $135.00 18,400 54,000 10,800 121,200 liters X Favorable Favorable Unfavorable

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
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Direct Materials Usage Variances: Direct Materials Mix and Yield Variances Energy Products Company produces a gasoline additive, Gas Gain. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. If the controls are not effective, there can be a loss of output and efficiency. The standard cost of producing a 500-liter batch of Gas Gain is $135.00. The standard direct materials mix and related standard cost of each chemical used in a 500-liter batch are as follows: Chemical Benz Echol Protex Protex Benz CT-40 CT-40 Chemical Echol Total Echol Protex Total Benz Protex Benz CT-40 Total A 100 The quantities chemicals purchased and used during the current production period are shown in the following schedule. A total of 200 batches of Gas Gain were manufactured during the current production period. Energy Products determines its cost and chemical usage variations at the end of each production period. Quantity Used 38,000 liters 18,400 54,000 250 Mix variance 50 Mix 200 liters Usage variance 100 250 - Yield variance 50 600 liters 600 liters SP $0.200 0.425 0.150 0.300 0.425 0.150 0.300 The quantities of chemicals purchased and used during the current production period are shown in the following schedule. A total of 200 batches of Gas Gain were manufactured during the current production period. Energy Products determines its cost and chemical usage variations at the end of each production period. Chemical Quantity Used Standard Cost 38,000 liters $40.00 X 42.50 37.50 15.00 $135.00 X 42.50 18,400 54,000 10,800 121,200 liters 37.50 Required: Compute the total direct materials usage variance, and then break down this variance into its mix and yield components. Do not round intermediate computations and round final answers to the nearest cent. (CMA adapted) Favorable ✔ ✔ Favorable Unfavorable $135.00 15.00 ✓
Transcribed Image Text:Direct Materials Usage Variances: Direct Materials Mix and Yield Variances Energy Products Company produces a gasoline additive, Gas Gain. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. If the controls are not effective, there can be a loss of output and efficiency. The standard cost of producing a 500-liter batch of Gas Gain is $135.00. The standard direct materials mix and related standard cost of each chemical used in a 500-liter batch are as follows: Chemical Benz Echol Protex Protex Benz CT-40 CT-40 Chemical Echol Total Echol Protex Total Benz Protex Benz CT-40 Total A 100 The quantities chemicals purchased and used during the current production period are shown in the following schedule. A total of 200 batches of Gas Gain were manufactured during the current production period. Energy Products determines its cost and chemical usage variations at the end of each production period. Quantity Used 38,000 liters 18,400 54,000 250 Mix variance 50 Mix 200 liters Usage variance 100 250 - Yield variance 50 600 liters 600 liters SP $0.200 0.425 0.150 0.300 0.425 0.150 0.300 The quantities of chemicals purchased and used during the current production period are shown in the following schedule. A total of 200 batches of Gas Gain were manufactured during the current production period. Energy Products determines its cost and chemical usage variations at the end of each production period. Chemical Quantity Used Standard Cost 38,000 liters $40.00 X 42.50 37.50 15.00 $135.00 X 42.50 18,400 54,000 10,800 121,200 liters 37.50 Required: Compute the total direct materials usage variance, and then break down this variance into its mix and yield components. Do not round intermediate computations and round final answers to the nearest cent. (CMA adapted) Favorable ✔ ✔ Favorable Unfavorable $135.00 15.00 ✓
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